Name: What’s Coming is Worse Than 1929 Depression, It Will Last For Decades
Uploaded: 2025-08-06T18:04:51.000Z
Duration: 30 min 51 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

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Over a hundred days has passed since Trump started his trade war against the rest of the world and it's already having serious negative implications on the entire US economy.

And if this continues for another couple of years, it has the potential to entirely destroy the entire US economy.

It might seem like I am exaggerating, but I am not.

Here in this video, I am going to give you the facts, I am going to give you the numbers, I am going to explain how everything works and you will, by the end of the video, come to the exact same conclusion.

So if you are ready, give this video a thumbs up and let's get right into it.

To understand what is happening, we have to understand a fundamental difference between what is a government deficit and what is a trade deficit.

And these two things are not the exact same thing as they are often thrown in the media.

A government deficit is when the government overspends on anything.

The government is raising $5 trillion in taxes, but it's spending $7 trillion.

That's purely the fault of the US government that cannot balance its books.

On the other side, we have something called a trade deficit.

And a trade deficit is US businesses doing business with the rest of the world.

The United States buys a trillion dollars worth of products more than it sells to the rest of the world.

And at first glance, it seems like a real problem.

We want the rest of the world to buy from the United States as much as the US buying from everyone else.

This trade deficit is one of the most important ways that the United States keeps itself as the world's largest economy.

Because if it wasn't for this trade deficit, the US dollar cannot possibly be the global currency reserve.

So it's extremely important that the United States runs a trade deficit.

Now, this sounds controversial, and it sounds illogical, and a lot of you are already in the comment section want to blame me and call me whatever names you want to call me.

But listen very carefully to the end of the video to understand how it works.

The logic behind the current administration is that we are going to impose tariffs and we are going to raise money from these tariffs in order to close the deficit that the government has. 6.8 trillion dollars is being spent, 5 trillion dollars in revenue being raised from taxes and other sources, that leaves the government with a deficit of almost 1.9 trillion dollars.

So, if the United States right now importing almost 4 trillion dollars, and we impose hypothetically, let's say that 10 percent baseline tax, that already raises 400 billion dollars for the government and that closes partially the deficit.

But that baseline is just 10 percent of tariffs, for some countries, it can go to 20 percent, for some countries, it can go to 30, 40, and in case of China, right now, it's around 125 or 145 percent, some sources say that the real tariff is like 85 percent, but the higher it is, the more revenue you are going to generate from those imports.

But here is the most important thing is that, when you are importing something and the tariff raises for that product, the final price rises, which means that the more tariffs you are going to impose, the lower this number is going to be, the less imports will come to the US.

Now it's 4 trillion dollars, it can go down to 3 trillion dollars, 2 trillion dollars, 1 trillion dollars, and the revenue for the government is going to keep going down.

So this strategy might seem like a practical way to solve the problem, in reality, over the long run, just in 10 years, this strategy is not going to work.

But that's not the biggest problem, the real problem, if you dig down into this strategy, it is fundamentally going to destroy the US dollar as the global currency reserve.

Nothing is going to hurt the dollar as much as this strategy.

If you look at the rest of the world, rest of the world trades with each other.

So we have a bunch of countries, we have China, France, the European Union, the UK, Indonesia, India, and all those countries have to trade with each other.

Some of these countries, for example, produce real great cars, such as BMW, Mercedes from Germany.

China produces literally everything, electrical cars, toys, doughs, solar panels, you name it.

France, for example, produces nuclear technology, airbus planes, and so on and so forth.

And these countries have to trade with each other somehow, and they have to use a currency.

Right now, they are using the dollar, because the dollar is the global currency reserve, and it makes logical sense.

Now the question is that, where do you think those countries are going to get their dollars from?

So there must be a way for all of those countries, in order for them to trade between themselves to get the dollars first from somewhere, and they will get it from the United States.

But it doesn't work like, it's not that the United States is going to send a ship filled with containers that has so many dollars to other countries for them to be able to trade with each other.

So they must sell something in the United States, and in exchange, they will get those dollars, and then they will have the dollars, so they can trade with each other.

Germany, for example, can sell in the United States BMWs.

Saudi Arabia can sell in the United States oil.

France can sell to the United States nuclear technology.

China can sell iPhones, laptops, technology, whatever, you name it.

And that's why the United States is running such a huge trade deficit, because the United States has to run this trade deficit to make sure that the rest of the world have enough dollars to trade between themselves.

Wait a second, what advantage does that give the United States?

Does the United States have to do charity work to sacrifice itself for the rest of the world?

It actually provides the United States a real great advantage.

While the rest of the world has to produce something, like the value that they produce are the cars, the oil, or any kind of products.

But what value the United States produces?

It simply prints those dollars and gives those dollars to those countries.

And that is the value the United States produces.

So when you see a trade imbalance or a trade deficit that the United States has, it is not a problem at all.

There must be trade imbalance for the rest of the world to use the dollar as the global currency reserve.

And that's why the United States can simply buy everything and it doesn't have to produce that much.

And that's why the United States has 5% of the global population but it consumes 25% of the global resources.

Another advantage that it gives the United States in this entire system is that doing business in the United States makes it much easier in the United States.

So, suppose you want to bring dollars from China.

What currency you are going to use to pay the Chinese people in order to buy those dollars from Alibaba, for example?

You can literally just go to a Citibank or a JP Morgan, get a loan and pay someone in China to get those dollars and you have a successful business in the US.

Can the person in China do the exact same thing?

Can they borrow Chinese Yuan and pay you in the United States with Chinese Yuan?

No, you are not going to accept those Chinese Yuan.

So making business is much easier with US dollars and you don't have to hustle with those currency exchanges and they have their problems as well.

That also gives the United States two primary advantages.

So, the main exports of the United States are not the oil or steel or electrical cars but the United States mostly exports the US dollar.

That piece of paper that the United States prints, the Federal Reserve, that is the main export of the United States.

The main exports of Germany are cars, BMWs, Mercedes, Porsche.

The main exports of Middle Eastern countries are oil and gas.

The main exports of European countries are some kind of technologies.

The main exports of China are electrical cars, solar panels, iPhones.

But the main export of the United States is the US dollar.

The second advantage that it gives the United States is that it allows the United States to control the global banking.

There is a lot of hustle if you are actually doing with currency exchanges and that's why everybody simply prefers to use the dollar.

It just makes the entire business globally way easier than any other country.

And that's what gives the United States so much power over the global financial system.

Do you see how important it is for the United States to literally run a huge trade deficit?

Now, let's take a scenario where the United States is no longer going to run a trade deficit.

Let's say that the United States is going to sell to the rest of the world as much as buying and there is zero trade deficit.

There is going to be a shortage of dollars in the world and other countries, let's say be able to trade between themselves using the dollar.

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What’s Coming is Worse Than 1929 Depression, It Will Last For Decades

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